Recently I was talking to an entrepreneur about the critical metrics they track (also called KPIs). As we got into it, I realized they were tracking their metrics on a monthly basis, and not a weekly basis. Hmm, I thought, a month is much too long of a time period for tracking the things that are truly critical to the business. In addition, these metrics are mostly forward-looking items that are a precursor to what shows up in the financial statements (which are backward-looking), so it’s important to know if something is off as soon as possible.
Here are a few thoughts on why it’s important to track critical metrics weekly:
- Metrics typically have a relationship with other metrics (e.g. a percentage of marketing qualified leads become sales qualified leads and customer satisfaction scores relate to customer renewal rates) making it important to know if something’s not right quickly
- It often takes multiple reporting periods to see if something is trending the wrong way, making monthly reporting too long of a time frame
- Teams usually meet weekly, making a weekly metric cadence timely (and helps foster a culture of accountability)
Check out the Google Sheet for KPI Dashboards and track critical metrics weekly.
What else? What are some more thoughts on tracking metrics weekly?